How does the CFG scale affect the stability of digital currencies?

1 answers

• Dec 18, 2021 · 3 years ago
  The CFG scale is an important factor that affects the stability of digital currencies. When the CFG scale is large, it indicates a high rate of coin flow generation, which can lead to increased market volatility. This is because more new coins are being created and circulated, which can result in rapid price fluctuations. On the other hand, a small CFG scale suggests a lower rate of coin flow generation, resulting in a more stable market. With fewer new coins entering circulation, the price tends to be less volatile. Therefore, the CFG scale plays a crucial role in determining the stability of digital currencies.
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